Does it matter what insurance company I choose?
Home insurance companies are not all the same, even if the policies they offer are somewhat similar. When purchasing your homeowners insurance policy, you should first consider the terms of the policy. While the basic foundations of the policies are somewhat standardized throughout the insurance industry, there will still be some coverage differences from company to company. Some insurance companies tout their coverage differences as enhancements to the basic coverage provided by other insurances companies. You should compare the coverage provided to understand the differences.
In addition to the differences in policy coverage, home insurance companies differ from one another in their financial size and stability. There are agencies, such as A.M. Best (www.ambest.com), that analyze and rate the financial stability of all insurance companies. Your state department of insurance should also provide information on insurance companies permitted to do business in your state. Insurance is regulated by each state and insurance companies must be licensed by the state in which they wish to write policies. You should carefully research your prospective homeowners insurance company before choosing to buy a policy to protect your house and personal liability.